John Phelan has been removed as US Navy Secretary, marking the second major leadership change at the Pentagon since the start of the Iran war in late February. A senior administration official said President Trump and Defence Secretary Pete Hegseth agreed that new leadership was needed, and Hegseth informed Phelan before the news became public.
The Pentagon announced Phelan's departure "effective immediately" on Wednesday, with spokesperson Sean Parnell expressing gratitude for his service. Navy Undersecretary Hung Cao will serve as acting secretary. Reports suggest Phelan, a former financier and major Trump donor, was forced out amid tensions with senior military officials. One source told Axios his job was to follow orders, not set his own agenda, and that he did not get along with Hegseth.
Phelan had no military background. A Harvard Business School graduate and founder of a Palm Beach investment firm, he helped raise millions for Trump's campaign, hosting a fundraising dinner in Colorado in August 2024 with a minimum donation of $25,000. Trump praised him in November 2024 as having unmatched intelligence and leadership. However, the Wall Street Journal reported that Phelan's closeness to the president contributed to his downfall, including taking a battleship proposal directly to Trump and bypassing Hegseth.
The departure comes at a precarious time. The Navy, now led by Cao, is enforcing a blockade in the Strait of Hormuz amid a tenuous ceasefire, with at least 15 US warships in the region. The Iran war, which began with joint US-Israeli strikes in late February, has killed thousands, including 13 US service members, and driven up fuel prices. Recent polls indicate most Americans oppose the conflict.
Phelan is the second senior Pentagon figure to leave recently. On April 2, the retirement of Army Chief of Staff General Randy George was announced, with reports that Hegseth had demanded his resignation. In the months before the war, Trump also fired Air Force General Charles Q. Brown as chairman of the Joint Chiefs of Staff and removed Navy Admiral Lisa Franchetti. Lieutenant General Joe McGee was reportedly forced out in October after tensions with Hegseth.
